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| J. PINK ASSOCIATES, INC.,
FINANCIAL ADVISORS
555 Taxter Rd. Suite 190 Ph- (914) 524-7770
Elmsford, NY 10523 Fax- (914) 524-7771
Weekly Market Review |
| Greetings!
As I mentioned last week, the J. Pink Associates "theme for 2010" is "make each client feel like our only client". How can we do this for you? Is there something we can/ should be doing for you that we're not currently doing? If so, please let me know. |
The first week of 2010 picked up right where the previous year left off for the US stock market. The S&P 500, fresh off a gain of +26.5% in 2009 (total return), was up +2.7% for the week. The stock performance was particularly strong given that the December 2009 unemployment rate remained stubbornly high at 10.0% and an unexpected 85,000 job losses occurred last month. As of 12/31/09, 15.3 million Americans were out of work nationwide compared to 11.1 million at the end of 2008 (source: Department of Labor).
In another sign of just how financially vigilant Americans are behaving today, consumer credit (i.e., all borrowing activity excluding mortgages and home equity loans) dropped for the 10th consecutive month in November and now is at a lower level than where the total was at the end of 2007. Although this reduction in credit card balances (reflecting a concerted effort by consumers to live within their means) is long overdue, retailers looking for signs of a sustained economic recovery may find the numbers unsettling (source: Federal Reserve).
The government issued an 11-page advisory last Wednesday (1/06/10) that was directed towards US banks, encouraging them to prepare for the day in the future when interest rates will rise, resulting in escalating pressure on the loans the banks have on their books (source: Federal Financial Institutions Examination Council). |
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Notable Numbers
1. RIGHT ON - The morning after the S&P 500 closed at a bear market low of 677 on Monday 3/09/09, John Authers, journalist from the Financial Times newspaper wrote that "perhaps the greatest reason for hope (for the US stock market) at present is that almost all hope seems to have been lost." At the time of Authers' writing, the S&P 500 had fallen 55.2% over the previous 17 months (total return performance). In the 10 months since 3/09/09 to last Friday's close of trading (1/08/10), the stock index has gained +72.4%. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market (source: Financial Times).
2. FEAR - 70% of investors were "bearish" on the US stock market on 3/11/09 or just 2 days after the S&P 500 hit a closing low on 3/09/09 at the end of a 17-month bear market. By comparison, only 26% of investors identified themselves as "bearish" last week (source: American Association of Individual Investors).
3. BARACK BUFFETT - President Barack Obama predicted on 3/03/09 that "profit and earnings ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it" (source: White House).
4. WE WISH - Forecasters at the 1893 Chicago World's Fair (i.e., 117 years ago) predicted that by the year 2000, Americans would work no more than 3 hours a day (source: Wall Street Journal). |
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As always, if there's anything we can help you with, please feel free to call the office anytime.
I hope you have a great week.
Sincerely,
John
John W. Pink, Sr.
J. Pink Associates, Inc., Financial Advisors
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At J. Pink Associates, we do comprehensive financial planning and wealth management for families and small businesses by getting to know the unique details of your financial world and thoughtfully crafting a strategy to identify and support your goals. |
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This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed by NFP Securities, Inc. as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. The indices mentioned are unmanaged and cannot be directly invested into. Past performance does not guarantee future results. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the US stock market.
Securities and Investment Advisory Services offered through NFP Securities, Inc. a Broker/ Dealer, Member FINRA/ SIPC and a Federally Registered Investment Advisor.
NFP Securities, Inc. does not offer tax or legal advice
NFP Securities, Inc. Is not affiliated with J. Pink Associates, Inc., Financial Advisors |
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